Income tax is not applied to dividends or interest income
received from publicly traded shares and bonds that are available
for trading on a regulated market, Azernews
reports.
“As a continuation of the measures taken in the direction of the
development of the capital market, from February 1, 2023, for five
years, dividends and interest income paid on publicly offered
shares and bonds released for trading on the regulated market are
exempted from income tax.”
This was reported by the State Tax Service.
“Thus, dividends on shares on the stock exchange are also
exempted from tax. The changes made in the Tax Code in 2023 were
calculated to increase the target orientation of tax benefits in
this direction. In the current situation, the founders of the
enterprises are not the owners of the publicly offered and traded
shares on the regulated market, but other participants.”
“In this regard, the Tax Code has been amended in the direction
of reducing the tax rate at the source of payment of dividends from
10 percent to five percent, cancelling the tax exemption for
dividend income of state and local self-government bodies, budget
organisations, and public legal entities created on behalf of the
state, and charging a tax at a five percent rate,” it was
noted.
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